Plans For Bitcoin Hedge Fund Shelved By Mike Novogratz
Famous Ex Hedge Fund Manager and prominent Bitcoin backer Mike Novogratz has announced that his plan to roll out the first major Bitcoin and Cryptocurrency Hedge fund in the world has been put on hold for the foreseeable future till he sees what the markets hold for the cryptocurrency industry. Bitcoin has the worst week in its trading last week for a very long time, which saw it shed off almost a third of its overall value in the space of a few days. And although this kind of volatility is typical in the cryptocurrency industry which is used to seeing large swigs upwards ad downwards on a regular basis, the rapid and fall in the price of Bitcoin which at a time lost almost 10% in the pace of a few hours clearly rattled Novogratz and a whole lot of other investors and speculators which triggered his announcement.
Novogratz has been among the biggest beneficiaries of the cryptocurrency boom this year, which saw him rake in an estimated $250 million on a single trade for Ethereum’s token he previously bought at very low prices. He has been among Bitcoin and the crypto universe’ most bullish supporters and only a few weeks before announced that he was raising about $500 million in funding from friends and family (with him footing about half of the total) in order to launch what will be the biggest institutionalized cryptocurrency trading platform with vast interests ranging from mining, to trading where investors can buy in to the organization and reap in huge profits from the industry’s famed high yield rewards.
Novogratz however is not the only one rumored to be mulling on pursuing this option as big investment banking establishments such as JP Morgan, despite their CEO’s scathing attacks on the industry are also rumored to be considering opening their cryptocurrency trading desks early next year.
Bitcoin and the cryptocurrency world has had a year to remember as a whole, as this is the year that has seen the industry shatter all previous records in performances, increasing over 10 times in total market capitalization in the space of months with Bitcoin in particular, multiplying over 2000% at its peak a few weeks ago. This unprecedented surge industry watchers say was bound to be corrected by the drastic and sudden falls we witnessed which triggered Novogratz’ decision to pause on his latest venture, as he went on to predict that Bitcoin might fall to as little as $8000 in the latest price correction.
Like every time before now, Bitcoin has managed to disprove the accuracy of most predictions, as its prices have since stopped sliding at about $11,000 and have even recovered trading at just over $15,000 as of the time writing this piece. Bitcoin is still not yet 10 years in existence, and people are not yet too familiar with how it works, and as such the price swings might likely continue well into the future. But as calm return to the market, and trade normalizes, it is expected that ultimately the huge pull of the currencies promise for big profits, will keep attracting big investments, even institutionalized ones which are expected to become prevalent next year, and it won’t be long before we see Mike Novogratz making his re-entry again.